Data from the Pennsylvania Gaming Control Board shows that in December 2023, the state’s gaming income took a surprising nosedive, mostly due to decreased sports betting operations.
Despite a general upward trend in gaming income over the preceding several months and even years, the sector suffered its first year-over-year loss since February 2021 in November, with a decline of 1.7% compared to the same time in 2022. There was an 8% decrease in revenue from October to November, with the total income from commercial retail and digital operators amounting to $444.5 million.n
Holdouts and New Entries
Sports betting revenue fell sharply, accounting for the bulk of the loss, even though overall income from commercial retail and internet operators was a solid $444.5 million. There was a record-breaking $934.1 million in sports bets, while sportsbook operators’ taxable income fell precipitously to $12.9 million, down from $52.9 million in November 2022.
The Pennsylvania Gaming Control Board said that this drop was caused by the operators’ 5.3% lower hold rate and the entrance of ESPN BET from PENN Entertainment, which offered a promotional package worth $14.8 million in non-taxable promotional credits.
More Mixed Results
Online casinos, on the other hand, generated more than $150 million in income for the third month in a row, even if sports betting had a setback. The combined revenue of $158 million was a 2% rise over October’s total, although it was somewhat below the record recorded in September, which was $159.5 million.
Results differed when looking at the online gambling industry’s revenue split by operator. With DraftKings, BetMGM, and PointsBet all sharing the Hollywood Casino license, November’s $61.1 million was just lower than October’s $61.2 million. In contrast, the license for Valley Forge Casino Resort, which includes the iCasinos FanDuel and Stardust, had a strong 16.1% rise, reaching $41.1 million. But the $27.7 million Rivers Philadelphia license—which includes BetRivers, PlaySugarHouse, and Borgata—fell a 5.5% decrease.
Meanwhile, retail casinos came up with consistent but uneven outcomes. While overall slot and table game income was $267.6 million in November, down somewhat from October but up slightly from November 2022, different casinos showed different patterns of success.
Even though November’s earnings were lower than expected, Pennsylvania’s gaming sector is still on pace to generate more than $5.2 billion in 2022. Resilience in the sector as a whole and variation in individual casinos’ results are indicative of the ever-changing nature of the gaming environment in the state, which is defined by revenue patterns that vary among gaming categories.
